Archive for October, 2014

Continuing Eurozone Woes Hit Commodity Markets

Sunday, October 12th, 2014

Dollar strengthening hits EU commoditiesEurope could be facing a return to recession, according to IMF boss Christine Lagarde, with even the German economy, usually considered to be the powerhouse of the Eurozone, falling short of expectations. British Chancellor of the Exchequer, George Osborne, also added a note of caution that the UK economy could also be affected by another downturn in Europe.

Stock and commodity markets responded negatively during early October, with oil being particularly hard hit as the Brent benchmark dropped to a four-year low during early trading on the 10th, hitting $88.40 before rebounding slightly.

Although partly driven by declining demand from a moribund Europe, increases on the supply side are also causing some disruption.